Financial Performance - Third quarter sales were $210.3 million, with a gross profit of $42.8 million (20.3% of sales) and adjusted gross profit of $43.7 million (20.8% of sales) [3] - Operating loss was $(3.3) million ((1.6)% of sales), while adjusted operating income was $2.4 million (1.2% of sales), reflecting a 100 basis point improvement in adjusted operating margin compared to Q2 2025 [4] - Net loss for the quarter was $(9.4) million ((4.5)% of sales), with an adjusted net loss of $(5.1) million ((2.4)% of sales) [4] - Net sales for Q3 2025 were $210.3 million, a decrease of 1.3% from $213.8 million in Q3 2024 [32] - The net loss for Q3 2025 was $9.4 million, compared to a net loss of $7.1 million in Q3 2024, representing a 32.4% increase in losses year-over-year [32] - Adjusted gross profit for Q3 2025 was $43.7 million, down from $44.6 million in Q3 2024, reflecting a decrease of 2.0% [34] - Adjusted operating income for Q3 2025 was $2.4 million, compared to $0.7 million in Q3 2024, indicating a significant improvement in operational performance [35] - The company incurred $3.8 million in interest expense for Q3 2025, slightly up from $3.6 million in Q3 2024 [32] - The company reported a Loss Before Tax of $(3.7) million in Q3 2024, worsening to $(9.7) million in Q3 2025 [39] Revenue Guidance and Updates - The company updated its full-year 2025 revenue guidance to $860 million - $870 million, reflecting a reduction due to customer production volume decreases, particularly in North America [4] - Adjusted EBITDA guidance was updated to $30 million to $32 million, with an adjusted EBITDA margin of 3.5% to 3.7% [4] - The company announced new programs awarded this quarter totaling over $185 million in estimated lifetime revenue, including a new MirrorEye OEM program with an estimated lifetime revenue of $55 million [6] Product Performance - Year-to-date sales of the MirrorEye product increased by 78% compared to the previous year, indicating strong growth in key product categories [6] - Stoneridge Brazil reported third quarter sales of $18.9 million, an increase of $3.6 million or 23.5% compared to Q2 2025, driven by higher OEM and aftermarket sales [9] Financial Position - As of September 30, 2025, Stoneridge had cash and cash equivalents of $54.0 million and total debt of $171.1 million, resulting in net debt of $117.2 million [13] - The adjusted net debt to trailing twelve-month EBITDA compliance leverage ratio was 3.67x, remaining below the required ratio of not greater than 4.50x [14] - The company reported a total of $632.1 million in assets as of September 30, 2025, an increase from $621.6 million at the end of 2024 [31] - Cash and cash equivalents decreased to $54.0 million at the end of Q3 2025 from $71.8 million at the end of 2024, a decline of 23.5% [33] - Total current liabilities increased to $180.0 million as of September 30, 2025, compared to $150.0 million at the end of 2024, marking a rise of 19.8% [31] - Total Debt increased from $164.4 million in Q2 2025 to $171.1 million in Q3 2025, while Net Debt rose from $114.6 million to $117.2 million [45] Cash Flow and Expenditures - Year-to-date Free Cash Flow for Q3 2024 was $9.8 million, slightly increasing to $9.9 million in Q3 2025, while Adjusted Free Cash Flow improved from $11.9 million to $16.2 million in the same period [44] - Net Cash Provided by Operating Activities decreased from $28.5 million in YTD Q3 2024 to $25.2 million in YTD Q3 2025 [44] - Capital Expenditures, including Intangibles, decreased from $19.0 million in YTD Q3 2024 to $15.7 million in YTD Q3 2025 [44] - The company’s capital expenditures for the nine months ended September 30, 2025, were $15.7 million, down from $19.0 million in the same period of 2024 [33] Operational Metrics - Compliance Leverage Ratio improved from 3.39x in Q1 2025 to 3.67x in Q3 2025, remaining below the maximum requirement of 6.00x [47] - Control Devices Adjusted Operating Income was $2.3 million in Q3 2024, increasing to $2.8 million in Q2 2025, but dropping to $1.5 million in Q3 2025 [41] - Electronics Adjusted Operating Income rose from $3.8 million in Q3 2024 to $4.2 million in Q2 2025, and significantly increased to $6.7 million in Q3 2025 [43] - Adjusted EBITDA for Q3 2024 was $9.2 million, decreasing to $6.0 million in Q4 2024, and then increasing to $7.6 million in Q1 2025, with a further drop to $4.6 million in Q2 2025, and rising again to $9.3 million in Q3 2025 [39] Business Realignment Costs - The company incurred Pre-Tax Business Realignment Costs of $2.8 million in Q1 2025 and $1.7 million in Q2 2025, with a total of $2.1 million in Q3 2025 [39]

Core Insights - Stoneridge, Inc. reported third quarter sales of $210.3 million, with a gross profit of $42.8 million, representing 20.3% of sales, and an adjusted gross profit of $43.7 million, or 20.8% of sales [2][12] - The company experienced an operating loss of $(3.3) million, while adjusted operating income was $2.4 million, indicating a 1.2% operating margin [2][12] - Stoneridge is updating its full-year 2025 sales guidance to a range of $860 million to $870 million, reflecting lower production volume expectations primarily in the North American commercial vehicle market [14][15] Financial Performance - The net loss for the third quarter was $(9.4) million, with an adjusted net loss of $(5.1) million, leading to a loss per share of $(0.34) and an adjusted EPS of $(0.18) [2][12] - Adjusted EBITDA for the quarter was $9.3 million, or 4.4% of sales, improving to $11.7 million, or 5.6% of sales when excluding a non-operating foreign currency expense of $2.4 million [2][12] - The company generated $25.2 million in net cash from operating activities for the nine months ended September 30, 2025, and reported total cash and cash equivalents of $54.0 million [11][26] Segment Performance - Electronics segment sales decreased by 14.4% from the previous quarter to $128.0 million, primarily due to lower customer production volumes in North America and Europe [5][8] - Control Devices segment sales increased by 1.9% to $72.5 million, driven by higher sales in the North American passenger vehicle market, although partially offset by lower sales in China [6][9] - Stoneridge Brazil reported a 23.5% increase in sales to $18.9 million, attributed to higher OEM and aftermarket sales [7][10] Strategic Developments - The company announced a new MirrorEye OEM program with an additional truck manufacturer, expected to launch in 2028, with an estimated lifetime revenue of $55 million [4][12] - Stoneridge is also expanding its park lock actuator programs with Ford, projecting lifetime revenue of approximately $130 million [4][12] - A strategic review of the Control Devices business is ongoing, with the intent to potentially sell the segment [4][13] Market Outlook - The company anticipates improved take rates for its MirrorEye systems in North America, despite facing macroeconomic headwinds [4][15] - Stoneridge remains focused on long-term profitable growth through advanced technology offerings aligned with industry megatrends [4][15]

Core Viewpoint - Sparton Resources Inc. is initiating a non-brokered private placement to raise gross proceeds of up to C$500,000 for exploration of its Critical Metals projects in Ontario and Quebec [1][4]. Group 1: Offering Details - The Offering will consist of Units, including Quebec Flow Through Shares (QFTS), Federal Flow Through Shares (FFTS), Non-Flow Through Shares (NFTS), and Share Purchase Warrants (SPW) [2]. - NFTS units will be priced at C$0.03, comprising one common share and one SPW, allowing the purchase of an additional common share at C$0.05 for 24 months [3]. - FTS units will be offered at C$0.035, consisting of one common share and a half SPW, with the full SPW allowing the purchase of a common share at C$0.08 for 12 months [4]. Group 2: Use of Proceeds - Proceeds from the Offering will be allocated to exploration activities for Critical Metals projects, including the Pense-Montreuil polymetallic metals project [4]. - The gross proceeds from FTS will be used to incur Canadian exploration expenses, which will be renounced to purchasers by December 31, 2025 [5]. Group 3: Regulatory and Compliance - The closing of the Offering is contingent upon receiving necessary regulatory approvals from the TSX Venture Exchange [6]. - The securities offered will not be registered under the U.S. Securities Act and cannot be sold in the United States without proper registration or exemption [7].

Core Viewpoint - Stoneridge, Inc. will host a live webcast for its third quarter 2025 earnings conference call on November 6, 2025, at 9:00 a.m. ET, featuring key executives [1]. Group 1: Company Overview - Stoneridge, Inc. is headquartered in Novi, Michigan, and is a global supplier of electronic systems and technologies that enhance vehicle intelligence and safety for both on- and off-highway transportation sectors [1]. Group 2: Upcoming Events - The third quarter 2025 earnings conference call will be led by president and CEO Jim Zizelman and CFO Matt Horvath [1]. - The webcast will be accessible on the Presentations & Events page of the company's website [1].

Group 1 - Crude Value Insights provides an investing service and community focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas sector [2]

Core Points - Sparton Resources reports that Beijing Puneng Century Technology Co. Ltd. has won a bid to construct a 50 Megawatt, 200-Megawatt Hour all-vanadium liquid flow battery energy storage power station in Hubei Province, China [1][2] - The project is part of the VRB China Joint Venture, which is 51% owned by Shanxi Red Sun Co., Ltd. and 49% owned by VRB Energy Inc. [2] - The winning bid value for the project was 467 million RMB, approximately $65.6 million USD [3] - The project is expected to be connected to the grid by December 31, 2025, enhancing local electricity stability and economic development [4] - The installation will be executed by a consortium including BJP, Changyang Lutong Engineering Construction Co., Ltd., and Hubei Electric Power and Design Institute Co., Ltd. [3] - Sparton holds a 9.975% interest in VRB Energy, translating to an indirect 4.4% interest in the VRB China Joint Venture [3] - Ivanhoe Electric Inc. is also establishing VRB USA to construct a vanadium battery manufacturing facility in Arizona [5]

Core Insights - Two auto stocks are experiencing a decline in their Momentum scores, indicating a weakening performance in the market [1][3] Group 1: Polestar Automotive - Polestar Automotive's Momentum score dropped significantly from 80.69 to 25.7 within a week [4] - The decline is primarily due to a widening net loss of $1.19 billion in Q2, which includes a $739 million non-cash impairment charge [4] - The company issued a going concern warning, indicating potential challenges in continuing operations without restructuring or additional funding [4][5] Group 2: Stoneridge Inc. - Stoneridge Inc. saw its Momentum score decrease from 83.32 to 35.31, a drop of 48.01 points [6] - The disappointing second-quarter performance led to missing consensus estimates significantly [6] - The company faced challenges from unfavorable currency movements, tariffs, and a costly product mix impacting its financial results [6][7]

Core Insights - Sparton Resources Inc. has commenced field operations at the Pense Critical Metals Project, which shows similarities to the Outokumpu deposits in Finland [1][12][15] - The project area spans 6,800 hectares and is located near Englehart, Ontario, with recent exploration permits obtained from both Ontario and Quebec governments [3][15] - The presence of significant gold mineralization is noted as an additional opportunity, especially with current gold prices at all-time highs [16] Exploration and Findings - Initial drill programs and funding assistance from the Ontario Junior Exploration Program (OJEP) have been reported, with a new funding application submitted for ongoing exploration [2] - Historical work at the Verrier zone has shown promising results, with assays returning values of up to 0.1% Copper and 0.4% Zinc, indicating potential for further mineralization extending into Quebec [5][6] - Recent reconnaissance geophysics has identified new targets at Pense, with at least twelve untested geophysical zones now recognized [8][13] Mineralization Details - The mineralization at Pense consists of massive to semi-massive sulphides, including pyrite, pyrrhotite, sphalerite, and chalcopyrite, hosted in mafic and ultramafic volcanic rocks [12] - Historical assay values from the Gagne program reported up to 1.31% Copper, 0.32% Nickel, and 1.2% Zinc over sample widths of up to 1.5 meters, indicating significant mineralization potential [6][14] - The newly recognized mineralization at the Verrier and Gagne zones is of particular interest due to its association with skarn mineral development related to syenite intrusions [12][15] Project Scope and Future Plans - The project scope has expanded significantly with the evaluation of new zones, and the CEO has expressed optimism about the potential for multiple critical metals targets [15] - Ongoing prospecting and sampling programs are underway, with assay results pending [9] - The exploration program aims to test all other targets within the Ontario and Quebec claims, leveraging the documented critical metals mineralization [15]

Core Viewpoint - Sparton Resources Inc. has elected two new members to its Board of Directors, enhancing its expertise and strategic direction, with over 99% of votes in favor of their election [1] Group 1: New Board Members - Arthur Potts, a former Ontario Provincial Parliament member, brings extensive experience in government relations and sustainable technologies, and has been appointed Senior Vice President of Sustainable Development [2][3] - Ahlan Veerasamy, a Chartered Professional Accountant with over 30 years in financial management and auditing, has been appointed Chairman of Sparton's Audit Committee, strengthening the company's financial oversight [4][5] Group 2: Company Overview - Sparton Resources Inc. focuses on mineral exploration, particularly critical metals and gold, with active projects in Ontario and Quebec, and holds a strategic investment in a vanadium flow battery manufacturer [7]

Financial Data and Key Metrics Changes - The second quarter sales were $228 million, including approximately $3 million of favorable foreign currency impact [22] - Second quarter free cash flow increased to $7.6 million, an improvement of approximately $5.9 million compared to the second quarter of the prior year [6][33] - Adjusted EBITDA for the second quarter was $4.6 million, or 2% of sales, heavily influenced by non-operating foreign currency expense of $3.4 million [23][26] Business Line Data and Key Metrics Changes - MirrorEye sales set a record with a 21% growth compared to the first quarter of 2025, driven by the ramp-up of OEM programs [4][10] - Control Devices second quarter sales were $71.2 million, growing by 1.9% relative to the first quarter, primarily due to higher demand in the North American passenger vehicle market [24] - Electronics second quarter sales were $149.6 million, with MirrorEye revenue growing by 21%, offset by lower sales in the European commercial vehicle end market [25][26] Market Data and Key Metrics Changes - The North American commercial vehicle production volumes are expected to decline by approximately 17.5% this year, impacting overall market conditions [31][28] - Stone Ridge Brazil's second quarter sales totaled $15.3 million, representing a 6% growth relative to the first quarter, driven by higher aftermarket product sales [29] Company Strategy and Development Direction - The company is focusing on long-term growth strategies, including a review of strategic alternatives for its Control Devices division, potentially leading to a sale [35][36] - The company aims to optimize resources towards high-growth areas such as MirrorEye and Stone Ridge Brazil, which have shown record business awards [37][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged complex market conditions but emphasized resilience and focus on factors within their control, including operational efficiencies and cost control [9][10] - The company is maintaining its full-year revenue guidance of $860 million to $890 million, despite anticipated declines in production volumes [31][32] Other Important Information - The company executed a global cash repatriation program resulting in a total debt reduction of $38.8 million and a net debt reduction of almost $20 million [33] - The company announced several significant new awards totaling approximately $775 million in lifetime revenue, including the largest program award in its history [8][40] Q&A Session Questions and Answers Question: Confirmation on MirrorEye contract announcement - Management confirmed that the contract will not impact 2025 and 2026 revenue as it is an extension and takes the program through 2033 [45][46] Question: Impact of new fleet orders on 2026 outlook - Management indicated that the new fleet customers associated with the recent OEM business win would positively impact the 2026 outlook [48] Question: Non-operational FX impact on guidance - Management clarified that the non-operational FX impact was incorporated into the guidance and there should not be any incremental headwinds moving forward [51][52]